RD (Recurring Deposit) Calculator
Total Investment
₹0
Interest Earned
₹0
Maturity Amount
₹0
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) Calculator helps you compute the maturity amount and interest earned when you deposit a fixed sum every month in an RD account. Unlike an FD where you invest once, an RD allows you to build a corpus gradually through disciplined monthly savings. Indian banks compound RD interest quarterly, and this calculator applies that standard formula to give you accurate results.
How to Use
- 1.Enter your monthly deposit amount using the slider or text box.
- 2.Set the annual rate of interest offered by your bank.
- 3.Choose the investment time period in years or months.
- 4.The calculator instantly shows Total Investment, Interest Earned, and Maturity Amount.
Formula Used
Where i = quarterly rate = annual rate / 400
n = number of quarters = tenure (months) / 3
R is the monthly deposit amount and n is the total number of quarters. For example, ₹5,000/month at 7% for 2 years gives a maturity amount of approximately ₹1,29,200 with interest of ₹9,200.
Frequently Asked Questions
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings scheme offered by banks where you deposit a fixed amount every month for a chosen tenure. At maturity, you receive the total principal plus accumulated interest. RDs are great for disciplined savings and guaranteed returns.
What is the difference between RD and FD?
In an FD you invest a lump sum once, while in an RD you invest a fixed amount monthly. FDs suit those with a large amount to invest immediately, while RDs are ideal for salaried individuals who want to save incrementally each month from their income.
Is premature withdrawal allowed in RD?
Yes, most banks allow premature closure of RDs, but a penalty is charged, typically resulting in 0.5–1% lower interest rate than the applicable rate. Some banks enforce a minimum lock-in of 3 months before allowing any withdrawal.
Is RD interest taxable in India?
Yes, RD interest is fully taxable as per your income tax slab rate. TDS is deducted if the total interest exceeds ₹40,000 per financial year (₹50,000 for senior citizens). You should declare RD interest income in your annual ITR filing.